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  • Writer's pictureDonnelle Brooks

What happened to Xinja?

In the ever-evolving landscape of digital banking, the rise and fall of neobanks have become a fascinating narrative of innovation, competition, and market dynamics. One such chapter in this story is the tale of Xinja, the Australian neobank that burst onto the scene with ambitious plans to disrupt the traditional banking sector. However, Xinja's journey took an unexpected turn, leaving many wondering what happened to this once-promising fintech trailblazer. In this article, we delve into the twists and turns of Xinja's brief but impactful existence, exploring the factors that led to its decision to exit the banking business and examining the broader implications for the world of digital finance.

What is Xinja?

Xinja is a dynamic and innovative financial technology (FinTech) company that has made significant waves in the world of digital banking and personal finance. Founded with the mission of revolutionizing the way people manage their money, Xinja offers a wide range of financial products and services designed to simplify and enhance the banking experience. From high-yield savings accounts to intuitive budgeting tools and a user-friendly mobile app, Xinja empowers individuals to take control of their financial futures with ease. With its commitment to transparency, competitive interest rates, and customer-centric approach, Xinja has quickly gained popularity among those seeking a modern and efficient banking alternative. Discover how Xinja can transform your financial journey and help you achieve your monetary goals in today's digital age.

Who owns Xinja?

Xinja was an Australian neobank, and its ownership was distributed among various shareholders and investors. Eric Wilson was one of the notable figures associated with Xinja as its founder and former CEO. However, please note that the ownership and leadership of companies can change over time, especially in the fast-moving FinTech industry. To get the most up-to-date information on Xinja's ownership, I recommend checking the latest news articles, press releases, or the company's official website.

What Happened to Xinja?

Xinja, the Australian neobank, made significant headlines when it decided to exit the banking business. In December 2019, Xinja became one of the first digital banks to receive a full banking license in Australia. However, in 2020, due to challenging market conditions and regulatory constraints, Xinja made the decision to cease its banking operations.

Xinja announced its intention to return its banking license to the Australian Prudential Regulation Authority (APRA) in December 2020. The company cited difficulties in raising necessary capital to support its banking operations and concerns about the sustainability of its business model as reasons for the decision. Xinja subsequently began returning customer deposits and closed its savings and transaction account offerings.

Why did Xinja fail?

Xinja, the Australian neobank, faced significant challenges that ultimately led to its collapse. Some of the key factors contributing to Xinja's decision to exit the banking business include:

Capital Shortfall

One of the primary reasons for Xinja's collapse was the inability to secure sufficient capital to sustain its operations. Building and maintaining a fully functioning bank requires substantial funding, and despite initial success and investor interest, Xinja struggled to raise enough capital to support its growth plans.

Intense Competition

The neobank space in Australia is highly competitive, with several other neobanks and traditional banks vying for market share. Xinja faced tough competition in attracting and retaining customers, which put pressure on its financial performance.

Regulatory Environment

Operating as a bank in Australia requires strict regulatory compliance, and neobanks must meet rigorous licensing and capital requirements. Xinja encountered challenges in navigating the regulatory landscape and faced delays in obtaining certain licenses.

Low-Interest Rate Environment

The persistently low-interest rate environment in Australia also impacted Xinja's ability to generate sufficient revenue from traditional banking activities like lending. Low-interest rates can compress profit margins and make it challenging for banks to generate income from interest-based products.

Customer Acquisition Costs

Acquiring and retaining customers in a competitive market can be expensive, especially for a smaller neobank. The cost of customer acquisition and marketing efforts to stand out in a crowded marketplace likely added to Xinja's financial strain.

Uncertain Economic Environment

The economic impact of the COVID-19 pandemic further complicated Xinja's path to sustainability. The pandemic led to increased uncertainty in the financial markets, affecting consumer behavior and potential investors' willingness to commit funds.

As a result of these challenges, Xinja made the difficult decision to return its banking license and exit the banking business in December 2020.

Alternatives to Xinja

Want to stay with a neobank? Here are 3 alternatives to Xinja:

Up Bank

Up Bank is a popular Australian neobank that offers a compelling alternative to Xinja. With a sleek mobile app and a customer-centric approach, Up Bank has gained a strong following among tech-savvy users. Up Bank provides features such as real-time transaction notifications, round-up savings, and a high-interest savings account. It's known for its fee transparency, with no hidden charges, and offers a variety of financial tools to help users manage their money effectively. Up Bank also benefits from a partnership with Bendigo and Adelaide Bank, which provides added security and access to a wide network of ATMs.


While not originally from Australia, Revolut is a global neobank that has gained popularity for its international capabilities. It allows users to hold multiple currencies in their accounts, make fee-free international transfers, and spend abroad at competitive exchange rates. Revolut offers various account types, including a premium subscription with added benefits like travel insurance and cryptocurrency trading. Its user-friendly app provides insights into spending patterns and allows users to set budgeting goals. With its extensive range of financial services, Revolut serves as an appealing alternative for those looking for a more international focus in their banking needs.


Another notable Australian neobank, 86400, offers a comprehensive banking experience. It emphasizes personalized banking, allowing users to create savings goals, set up automated bill payments, and track their financial progress. 86400 offers competitive interest rates on savings accounts and provides a Visa debit card for everyday spending. It also includes features like a real-time transaction feed and an AI-driven financial assistant to help users make informed financial decisions. The bank was acquired by National Australia Bank (NAB), which adds an extra layer of security and access to NAB's ATM network.

These three alternatives to Xinja each have their unique features and strengths, catering to a range of user preferences and needs in the rapidly evolving landscape of digital banking.

What happened to Xinja: The Bottom Line

While the collapse of Xinja was a setback for the neobank industry in Australia, it also serves as a reminder of the complexities and obstacles that new players in the financial sector may face, even with innovative ideas and strong initial traction.

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